Seagate Technology PLC (STX)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,195,000 | 5,388,000 | 5,062,000 | 4,894,000 | 4,156,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,199,000 | 109,000 | 631,000 | 1,787,000 |
| Debt-to-capital ratio | 1.40 | 1.29 | 0.98 | 0.89 | 0.70 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,195,000K ÷ ($5,195,000K + $-1,491,000K)
= 1.40
The debt-to-capital ratio of Seagate Technology PLC has shown an upward trend over the past five years, indicating an increasing reliance on debt to finance its operations. In particular, the ratio has increased from 0.70 in June 2020 to 1.40 in June 2024. This suggests that a larger portion of the company's capital structure is now comprised of debt rather than equity. While the ratio has fluctuated over the years, the overall trend indicates a growing level of indebtedness relative to the company's total capital. This could potentially raise concerns about the company's financial leverage and ability to service its debt obligations in the long term.
Peer comparison
Jun 30, 2024